US stocks higher, wiping out most of the Fed decline
The S&P 500 is up 22 points to 3002 in an impressive rally after opening flat two hours ago. I wrote yesterday about how the quick bounce in stocks from the lows was a dead giveaway of a market looking to buy dips and everything we've seen today proves it.
Even if you take away all the Fed cuts that are priced in, I think this market can go higher if only because Powell has now proven that 1) he's not going to hike again 2) he will protect the market if need be.
The Powell put is is on, even if it's not a strong as some hoped.
At the same time, Trump is obsessed with stock market performance. His comments on China were telling, saying he thinks they will run out the clock and hope for a chance in the election. He also 'that's fine' because the the US is collecting billions in tariffs. For me, the takeaway from that is that he's also fine with the status quo until the election and will use it as a talking point to say how he's the only one who can get a deal (and how his opponent will roll over).
